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[SMM midday review] Economic recovery at home and abroad, rising demand for non-ferrous metals has exceeded expectations, and the black system is floating red in the whole line.
May 7,2020 11:52CST
The content below was translated by Tencent automatically for reference.

SMM5, March 7: non-ferrous metals generally rose in the morning as domestic demand continued to expand and some countries around the world restarted economic activity to stimulate demand. A few days ago, the State Council stressed the implementation of the strategy of expanding domestic demand, promoted the recovery of consumption, accelerated the construction of major projects, and made good use of investment in the central budget and special debts of local governments to strengthen the market. Foreign trade has also continued to pick up, with imports and exports rising 8.2 per cent in April, with imports and exports rising 8.2 per cent in the first four months, according to customs data today. Shanghai nickel soared after news that local media in Indonesia had updated information on the follow-up to the previous worker demonstrations at the WedaBay Nife industrial park, which did not appear to have an impact on the continued operation of the plant and nickel supply. But the emergency still worries the market about supply. Moreover, Suriname, which has the largest shipments in the Philippines, will resume shipments one after another in mid-May, and the tightening pattern of nickel ore supply will gradually ease in the later stage. The price of nickel is short-term or volatile, and the recovery of downstream demand will be concerned in the later stage. Shanghai Zinc, Lun Zinc rose more than 3% yesterday, and the inner market rose. And at present, the supply of the mine end is tight and the maintenance of the superimposed smelter is increasing, and the market is worried about the supply of refined zinc.

Black series generally rose more than 1%, of which the main thread since the end of last month all the way high, today thread 10 about 3400 open, during which it broke through the recent 3430 pressure level. The main reason is that demand exceeded expectations, inventory maintained a decline, and some special debt can be used to stimulate demand for shed reform projects, superimposed loose monetary policy is beneficial to downstream consumer demand. On the iron ore side, considering that there is still room for upward operation of blast furnaces in domestic steel mills in May, coupled with the strong demand for steel mills in the state of low inventory, import ore prices are still driven upward in the short term; however, as shipments from Australia and Brazil continue to pick up in the near future, the pressure on the supply end is expected to become more prominent in the later stage, still suppressing prices to a certain extent.

Crude oil fell 0.16 in the previous period. China imported 170 million tons of crude oil from January to April, up 1.7 per cent, with the average import price falling 8.9 per cent to 2906.7 yuan a tonne, according to data released by the General Administration of Customs on Thursday. China imported 32.328 million tons of natural gas from January to April, up 1.5 per cent, with an average import price of 2702.5 yuan per tonne, down 15 per cent. From January to April, China imported 9.613 million tons of refined oil products, down 21.3 percent, and the average import price was 3486.8 yuan per ton, down 5.5 percent. Although the international oil price fell sharply in the early stage, China's crude oil imports did not rise significantly, but the import of refined oil products fell by 20%.

Close at noon

As of 11:30, HKEx had added US dollar-denominated small metal contracts:

Today's stock

Zinc: the mainstream transaction in Ningbo was 16760-16860 yuan / ton, and the price difference between Ningbo and Shanghai ordinary brands narrowed from 40 yuan / ton to 20 yuan / ton, the price difference between Ningbo and Shanghai increased from 40 yuan / ton to 20 yuan / ton. The market is higher, traders are more willing to ship, rising water is slightly lower than yesterday. In the first time of the morning, the supply of Tiefeng, Huize and Hualian was reported near 140 yuan / ton, while Kirin reported that the water rose 130-140 yuan / ton on the May contract. Zinc prices have strengthened, but alloy enterprises have not recovered from the sharp drop in foreign trade orders, some enterprises have a poor willingness to buy, a small number of enterprises just need to buy, contribution must be done. Overall, today's market transaction atmosphere is basically flat compared with yesterday, the transaction situation is still poor.

The mainstream transaction of Guangdong zinc was 16660-16730 yuan / ton, and the quotation focused on 20-60 yuan / ton of Shanghai zinc 2006 contract. The discount of 100 yuan / ton in Guangdong stock market was 10 yuan less than that of the previous trading day. In the first trading session, futures fluctuated at a high level, and the initial market was still dominated by price shipments, but downstream had poor acceptance of high rising water and zinc prices, traders also received goods at low prices, and some holders began to adjust their prices for shipments. part of the supply net price floated 10 yuan, and Kirin, Mengzi, Huize and Tiefeng quoted a price of 3060 yuan / ton for the Shanghai zinc contract in June. In the second trading session, futures prices changed little, downstream procurement was still limited, holders' willingness to ship at high prices increased, spot prices continued to fall, and market transactions improved slightly, but transactions between traders were still dominant. Kirin, Mengzi, Huize and Tiefeng quoted 20-40 yuan per ton for the June contract. Kylin, Mengzi, Huize, Tiefeng mainstream transaction in 16660-16730 yuan / ton.


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